NOT TO INVEST MORE THAN 30% OF THE MEMBER FUND’S TOTAL ASSET VALUE IN PUBLIC FUND CERTIFICATES
The Ministry of Finance issues the Circular No. 98/2020/TT-BTC providing guidelines on operation and management of securities investment funds on November 16, 2020.
According to the Circular, in the management of a member fund, the fund management company shall ensure: The fund's capital and assets shall not be used to invest in the fund itself; The fund's capital and assets shall not be lent or used to guarantee any loan, not be used to underwrite securities issuance.
The member fund shall be invest only in public fund certificates or shares of public securities investment companies managed by other fund management companies, in which the following restrictions shall be ensured:
Firstly, not to invest in more than 10% of total outstanding fund certificates of a public fund, or outstanding securities of a public securities investment company;
Secondly, not to invest more than 20% of the total asset value of the fund in fund certificates of a public fund, or shares of a public securities investment company;
Thirdly, not to invest more than 30% of the total asset value of the fund in public fund certificates, or shares of a public securities investment company.
This Circular takes effect on January 01, 2021.
